Executive summary
A high penetration mobile market in the Maldives sees strong mobile broadband growth.
With its relatively small population of less than 350,000 living on many islands across the archipelago, providing good communications for the Maldives has been paramount. The nation has addressed this challenge with considerable success. It now prides itself on having built one of the most advanced telecommunications systems in the region. With the country’s well-developed national network, the capital Malé is particularly well served, as are the tourist resort islands; this has been further enhanced by the provision of a major submarine cable connection to Sri Lanka; at the same time the opportunity has been taken to provide undersea links between the main atolls, thereby substantially strengthening the domestic connectivity.
Efficient telecommunications services have been established to all inhabited islands by the national telco, Dhivehi Raajjeyge Gulhun Pvt Ltd (Dhiraagu). Dhiraagu, initially set up as a joint venture between the government and Cable & Wireless plc, has played a major role in establishing the country’s telecoms infrastructure. Despite having been criticised in the early stages of development for its high tariff structure, the company has played an undeniably important role in building networks and delivering telephone services across the archipelago. Dhiraagu’s shareholding was opened to public investment in late 2011 when an IPO saw the government sell off some of its stake.
Dhiraagu was initially granted an exclusive licence to provide all telecommunications services in the country. With its licence renewal in 1995, the operator was given a more clearly stated mandate to provide telephone access to all inhabited islands by the year 2000. The Dhiraagu monopoly was officially set to run out in 2008. However, the government moved to open up the market earlier than that. The licensing of a second ISP by the government in 2002 signalled its intention to proceed with deregulation ahead of time. A second mobile licence was issued in 2004; however the new operator Wataniya Telecom did not become operational until 2006.
Despite the slow start, the introduction of a level of competition quickly saw the telecom market boom. By 2011 Wataniya had an estimated 130,000 mobile subscribers or just under one quarter of the market. At the same time the incumbent was also continuing to vigorously grow its mobile subscriber base. Mobile penetration in the Maldives had almost reached a remarkable 170% by the start of 2012. However, mobile subscriber growth was finally ‘flattening out’ and the market’s attention was shifting to new generation offering. Both operators had launched 3G and higher services, and the take up rate was particularly strong.
Market highlights:
- The Maldives has continued to benefit from its newly competitive market, with overall service improving greatly since the arrival of second mobile operator Wataniya Telecom;
- Wataniya quickly grabbed and held a little less than a quarter of the mobile market;
- A high penetration of 170% at the start of 2012 had finally seen growth in mobile subscribers stall;
- There was growth strong growth in Third Generation (3G) and more advanced services in 2011 and into 2012 as Dhiraagu and Wataniya competed strongly for customers;
- Despite the incumbent Dhiraagu continuing to promote fixed-line services, fixed numbers appeared to have stalled in 2011 and were threatening to decline in 2012;
- With internet services predominately broadband based (more than 90% of the total Internet subscribers), growth in this market segment was encouraging; but internet subscriber penetration was still below 10% coming into 2012;
- An IPO in late 2011 saw the government in the Maldives sell some of its shares in Dhiraaghu; majority shareholder Cable & Wireless continued to hold 52% of shares following the IPO;
- An overall slowing in the national economy in 2009 had, not surprisingly, affected the country’s telecom sector; by 2011/2012, however, stronger growth in the economy had returned providing encouraging signs for the next few years and suggesting further growth in the telecom sector.
Maldives - key telecom parameters – 2011 - 2012
Category
| 2011
| 2012 (e)
|
|---|
Fixed-line services:
|
|---|
Total number of subscribers
| 45,000
| 45,000
|
Annual growth
| -16%
| 0%
|
Fixed-line penetration (population)
| 15%
| 15%
|
Internet:
|
|---|
Total number of subscribers
| 23,500
| 25,500
|
Annual growth
| 4%
| 9%
|
Internet subscriber penetration (population)
| 8%
| 8%
|
Mobile services:
|
|---|
Total number of subscribers
| 540,000
| 535,000
|
Annual growth
| 9%
| -1%
|
Mobile penetration (population)
| 169%
| 167%
|
(Source: BuddeComm)
This report provides an overview of the trends and developments in the telecommunications markets in Maldives. Subjects covered include:
- Key Statistics;
- Market and Industry Overviews;
- Major Operators (Mobile and Fixed)
- Regulatory Environment;
- Infrastructure;
- Mobile Market;
- Internet Market, including Broadband.
